@taxdean wrote:
Regarding the quoted phrase......is it referring to a scenario where the assets being sold are being sold by the decedent prior to his passing, but not inside a trust or even with no legal estate documents, or is it simply referring to someone else LIVING there, i.e., not selling the condo.
It is referring to a scenario where an individual is selling an asset in the same manner as the estate or trust would be selling an asset. In other words, a hypothetical individual would incur the same expenses as the estate or trust if the asset were being sold (or being prepared to be sold).
Note also that ownership costs are also incurred by individuals and, therefore, are not deductible by an estate or trust if they would be considered miscellaneous itemized deductions.
@taxdean wrote:
I am having trouble interpreting even this and even more trouble trying to interpret the Cornell legal document.
As an addendum, the link I posted is to a web site that is, indeed, hosted by Cornell (the Legal Information Institute), but the content is not a "Cornell legal document". Rather, it is a Treasury Regulation issued by the Treasury Department which is an official interpretation of the Internal Revenue Code and source of U.S. tax law.
